Differences Between Shares and Debentures
- Shareholders are effectively owners; debenture-holders are creditors.
- Shareholders may vote at AGMs (Annual General Meetings) and be elected as directors; debenture-holders may not vote at AGMs or be elected as directors.
- Shareholders receive profit in the form of dividends; debenture-holders receive a fixed rate of interest.
- If there is no profit, the shareholder does not receive a dividend; interest is paid to debenture-holders regardless of whether or not a profit has been made.
- In case of dissolution of firms debenture holders are paid first as compared to shareholder.
Read more about this topic: Financial Capital
Famous quotes containing the words differences and/or shares:
“I don’t know what immutable differences exist between men and women apart from differences in their genitals; perhaps there are some other unchangeable differences; probably there are a number of irrelevant differences. But it is clear that until social expectations for men and women are equal, until we provide equal respect for both men and women, our answers to this question will simply reflect our prejudices.”
—Naomi Weisstein (b. 1939)
“The ideal of men and women sharing equally in parenting and working is a vision still. What would it be like if women and men were less different from each other, if our worlds were not so foreign? A male friend who shares daily parenting told me that he knows at his very core what his wife’s loving for their daughter feels like, and that this knowing creates a stronger bond between them.”
—Anonymous Mother. Ourselves and Our Children, by Boston Women’s Health Book Collective, ch. 6 (1978)